ATLANTA, GA--(Marketwired - Aug 14, 2013) - Speedemissions, Inc. (
"Although the first six months of the year provided us with some unexpected challenges, we've taken several positive steps to mitigate these circumstances. Among the measures implemented were the closing of three underperforming stores in the Houston market, in addition to the closing of two stores in December of last year. As a result, the company has closed or subleased five stores that were negatively impacting profitability. Along with these pro-active, cost-saving programs, we have reduced our general and administrative expenses by identifying greater efficiencies in staff, payroll, consulting fees and travel," stated Rich Parlontieri, President and CEO of Speedemission, Inc.
"While we closed stores in Atlanta, St.Louis and Salt Lake City as a result of non-renewable leases, the Atlanta and St. Louis stores have since been relocated with new sites that opened in early August and we continue to seek a replacement site for our Salt Lake City location. Along with these unanticipated store closings, heavy discount pricing in the Houston market during the first half of 2013 had an impact on revenue. However, we believe the fees in the Houston marketplace have stabilized at the standard price-point established several years ago and we now anticipate same-store inspections to increase. We're extremely optimistic that these initiatives, when combined with the implementation of the new store business model and our planned future expansion opportunities, will provide the company with improved financial results and increased shareholder value," added Parlontieri.
Summary Financial Results for Second Quarter Ended June 30th, 2013
- Revenue of $1,770,709, down 10.9% compared to $1,986,864 for the quarter ended June 30th, 2013
- Same store operating expenses decreased 0.5%
- Overall store operating expenses dropped 4.1%
- General and Administrative expenses decreased 9.9%
- Net loss for the second quarter 2013 was $111,490 compared to net loss of $76,967 for second quarter ended June 30th, 2012.
- Net loss for second quarter 2013 reduced by 59% or $159,282 to $111,490 as compared to the net operating loss of $270,772 in the first quarter ended March 31st 2013
Summary Financial Results for Six Months Ended June 30th, 2013
- Total revenue of $3,659,721, down 6.3% as compared to $3,907,869 for the six months ended June 30th, 2012
- Same-store sales declined 1.2% compared to same period in 2012 attributed mainly to a revision in safety inspection legislation in Utah
- Overall store operating expenses dropped 3.0% compared to first six month of 2012
- General and Administrative expenses decreased 6.4% compared to six month period ended June 30th, 2012
- Net loss of $382,263 for the first six months of 2013, ($100,000 of which is attributed to a one-time banking fee), compared to net loss of $192,749 for similar period ended June 30th, 2012
A full financial analysis of results for the period ended June 30th, 2013 is available in the Company's Form 10-Q, which is available on the Company's website at www.speedemissions.com or within the Filings section of the Securities and Exchange Commission's web site located at www.sec.gov.
U.S Emissions Industry Overview
According to recent reports, the U.S. Emissions Industry is estimated to be a $2.2 billion market. There are 250 million light-duty vehicles currently on US roads and highways, with 85.9% of these vehicles outside manufacturer's warranty. Thirty-two states (nearly all include major metropolitan areas, i.e. Atlanta, Houston) and the District of Columbia are required by the EPA to have vehicle emissions testing. Of these, there are twenty-four states that have decentralized programs that allow private industry, such as Speedemission, Inc., to perform emission tests and three that allow private industry to compete alongside the state testing facilities.
ABOUT SPEEDEMISSIONS, INC.
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emission testing and/or safety inspection as required by law. The Company is in the Atlanta, GA. Houston, TX, Salt Lake City, UT and St. Louis, MO. markets. The Company has expanded its business model through its newly introduced Speedemissions Car Care Stores and Speedemissions Car Care franchise unit. Speedemissions hopes to be among the first companies to offer its customers quick and efficient vehicle emissions testing and repair services. For more information, visit: www.speedemissions.com
Speedemissions, Inc. owns and developed the CARbonga line of apps for smart phone users. CARbonga is the first app which allows the average person to detect automotive car problems for their own vehicle or when buying a used vehicle. The CarBonga-SRI app provides a quick and easy way for consumers to stay on top of the safety of their vehicle by providing the most current safety-related recalls and service bulletins for their vehicles. For more information, visit www.carbonga.com and for CarBonga news updates follow @CarbongaApp on Twitter.
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Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to market acceptance for Speedemissions' products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including Speedemissions' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC's website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Speedemissions' results of operations, financial position, and cash flows. There can be no assurance that future results will meet expectations. While Speedemissions believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Speedemissions does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.